One in four companies making a loss

A new study from financial analysis firm Plimsoll has revealed that 235 companies, representing around one quarter of the fresh produce industry, are currently making a loss.

David Pattison, MD at Plimsoll and author of the report, said companies have been affected across the board with wholesalers, growers, producers and retailers all suffering.

“Everybody is talking about increasing transport rates and pricing pressures as the main issues. 110 companies are making a loss for the second, even third year running and are simply selling at prices their business cannot sustain."

Pattison believes companies must not be afraid to make changes. He added: “No one wants to trim costs, lay off staff, cancel dividend payments and the like but carrying on regardless is now unviable.

"They can no longer bury their heads in the sand; the companies innovating and trying something new are the ones with the most sustainable business model.”